[Japan] Hokkaido Electric Power Released the Hokuden Group Management Vision 2030

On April 30, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido) released its “Hokuden Group Management Vision 2030.” HEPCO transferred its Power Transmission & Distribution Division to the newly established “Hokkaido Electric Power Network " to legally separate the transmission and distribution divisions on April 1, 2020. The business split was implemented to comply with the Electricity Business Law Amendment Bill enacted in June 2015 (Act No. 47 of 2015). This is a major turning point because even after the split, both companies will still collaborate to supply electricity. The Management Vision discusses HEPCO’s plans on how the two companies will collaborate to provide stable electricity and its business plans in response to the changes in the business environment, including intensifying competition, advancements in technology, climate change issues, and an aging society.

The Management Vision 2030 sets two phases before and after the restart of HEPCO’s Tomari Nuclear Power Plant. The target profit of phase 1 will be 23 billion yen (approximately $215 million) and phase 2 will be 45 billion yen (approximately $422 million) [1]. HEPCO aims for the early restart of the Tomari Nuclear Power Plant to achieve a more balanced generation mix in terms of S+3E (Safety + Energy Security, Economic Efficiency, and Environment). HEPCO’s goal is to reduce CO2 emissions by half or more by FY2030, which is equivalent to 10 million tons or more/year (FY2013 baseline), through the restart of Tomari Nuclear Power Plant and an increase in renewable energy, as well as the use of Liquefied natural gas (LNG) fired thermal power. HEPCO’s three reactors at Tomari Nuclear Power Plant have been shut down since the Fukushima accident, waiting for the regulatory approval for the restart.

HEPCO will also facilitate its business growth through expanding its business outside of the Hokkaido area and overseas, and by entering into new businesses that utilize digital technologies, such as IoT and drones in a wide range of sectors, including transportation and real estate. HEPCO will also strengthen its resiliency against natural disasters. The newly established Hokkaido Electric Power Network will play a critical role in ensuring the secure and stable supply of electricity. [2] [3]

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